Harland & Wolff Group Holdings plc reports that it has sought and obtained permission from Ministers to advance negotiations in relation to the proposed £200 million guaranteed loan facility with UK Export Finance (UKEF) under its Export Development Guarantee Scheme ("EDG Scheme"). In order to ensure that the proposed loan facility is compliant with the relevant rules where UKEF was to provide a 100% guarantee to UK commercial lending banks ("Banks"), UKEF will now appoint an independent third party to ascertain an appropriate premium over SONIA. This process will commence in January 2024.

Following ministerial approval to progress negotiations, the Company will now firm up the Bank syndicate and appoint a lead arranger. In parallel, the Company will commence necessary documentation in relation to the credit and guarantee agreements as well as the security package that will be offered. It is likely that the security package will entail providing the Banks with a first charge on substantially all the assets of the Company, similar to what has been provided to Riverstone Credit Partners in March 2022.

This transaction will be subject to the agreement of Ministers, final approval of the financing terms, and Investment Committee approvals of the Banks.